TVS Group to Restructure Ownership Model
By: Ashwathy Nair
- TVS family members decided to subscribe to the terms and synchronise the possession.
- TVS family might deliberate to implement the family arrangement.
- Business to continue in the ordinary course without impacting any of the stakeholders.
On Thursday, the chairman and managing director of TVS Motor Company, Venu Srinivasan stated that members of the TVS family have decided to contribute towards the terms of the family arrangement memorandum with a view to align as well as synchronise the ownership of shares in a various group of companies. The senior member of the TVS family will deliberate to conduct the family arrangement.
TVS holding companies’ present shareholders primarily consisting of the third and fourth generations of founder TV Sundaram Iyengar.
Currently, members of the different branches of the TVS family are traditionally managing the various businesses/entities of the group.
Srinivasan stated that “With the passing time, various TVS family members felt that the ownership of shares in different businesses have to align and synchronise with the management of the respective companies, just the way it is currently being done.”
With a straight focus, on Thursday, the members of the TVS family had agreed to subscribe to the terms of a memorandum of family arrangement to record the arrangement of family.
The existing management of different companies/businesses that are listed and unlisted in the TVS Group will be continuing to be managed by the same family members.
“The management and functioning of the TVS Motor Company will not be affected by the arrangement in any way, and without any of the stakeholders being impacted, it is expected to continue the business in the ordinary course.”
Also, any royalty or payment of the brand usage from the operating companies to the TVS family members or their holding companies are not visualised in the terms of the family agreement.
“TVS Motor Company is not a party top of this arrangement. Therefore, it is not expected to affect the management and functioning of the company in any way by this arrangement.”
The TVS Family has been engaged in a varied range of businesses for more than a century through various entities wherein the branches of the TVS group have invested in through TVS Sundaram Iyengar & Sons Pvt. Ltd., Sundaram Industries Pvt. Ltd. as well as Southern Roadways Pvt. Ltd.
The TVS Group has developed its businesses over the decades and the TVS Group has evolved into a massive business empire with investments in a variety of companies, including two-wheeler and automobile product manufacturing, automotive dealerships, automotive parts distribution, financial services, logistics services, electronics and textiles.
